Facts of the Case

M/s Hind Security Force, through its sole proprietor Ram Nihal Choudhary, challenged an order dated 30.11.2024 passed under Section 74 of the GST Act, the appellate order dated 01.08.2025 dismissing its appeal as time-barred, and a further order dated 11.06.2025 attaching its bank account. The petitioner's grievance was that although it had initially opted 'No' for a personal hearing in its first reply, it had subsequently changed its position to 'Yes' in a second reply — yet no hearing was ever granted before the Section 74 order was passed, contrary to Section 75(4) of the GST Act.

Issues Involved

  1. Whether an assessing authority is obliged to grant a personal hearing once a taxpayer, even belatedly, opts for one in a subsequent reply.
  2. Whether failure to do so vitiates the resultant Section 74 order and the appellate dismissal that followed.
  3. Whether the consequential bank account attachment should also fall once the main orders are quashed.

Petitioner's Arguments

  • Contended that no opportunity of hearing was granted prior to passing the order under Section 74, contrary to the mandate of Section 75(4) of the GST Act.
  • Highlighted that although 'No' was opted in the first reply, the petitioner had specifically opted 'Yes' for a personal hearing in its second reply, which the authority disregarded.

Respondent's Arguments

  • The Standing Counsel, based on instructions, confirmed that while the petitioner had indeed opted for a hearing in the second reply, no opportunity of hearing had in fact been accorded before passing the order under Section 74.

Court Order / Findings

  • The Court found the impugned order contrary to the mandate of Section 75(4) of the GST Act, since the petitioner's later request for a personal hearing had gone unheeded.
  • Held that the issue was squarely decided by the co-ordinate Bench in Mahaveer Trading Company and by Bharat Mint and Allied Chemicals vs. Commissioner Commercial Tax, and that both the original order and the appellate order dismissing the appeal as time-barred could not be sustained.
  • Quashed the order dated 30.11.2024, the appellate order dated 01.08.2025, and — since the main orders no longer survived — also quashed the consequential bank account attachment order dated 11.06.2025.
  • Allowed the petition with the above observations, without costs.

Important Clarification

  • Once a taxpayer opts for a personal hearing at any stage of its reply — even if it had earlier declined one — the assessing authority is bound to grant that hearing before passing an adverse order under Section 74; failure to do so is an independent ground to quash the order under Section 75(4).
  • Where the principal demand order and appellate order are quashed for want of hearing, any consequential recovery action, such as a bank account attachment, automatically falls along with them and need not be separately justified.

Sections Involved

  • Section 74, CGST/UPGST Act, 2017 – governs demand and recovery for tax evaded by fraud or suppression.
  • Section 75(4), CGST Act, 2017 – mandates an opportunity of personal hearing, including where specifically requested by the taxpayer.
  • Section 79, CGST Act, 2017 – governs recovery of tax, including through bank account attachment, quashed here as consequential relief.

Decision – In Favour of

Allowed in favour of the assessee, with the Section 74 order, the appellate dismissal, and the bank account attachment all quashed.

Case Details

  • Court: High Court of Judicature at Allahabad, Lucknow Bench
  • Case No.: Writ Tax No. 1006 of 2025
  • Coram: Hon'ble Mr. Justice Pankaj Bhatia
  • Date of Order: 23 September 2025

Link to Download the Order

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